DONATE & Share Post Your Content On Smart Money Management

Search This Blog

Saturday, June 05, 2021

How To Trade "W" Pattern

How To Trade "W" Pattern

EUR/AUD OANDA:EURAUD

5 Tips to trade W reversal patterns:

1) Only trade W’s off the lows

2)Only trade W formations London & NY Session

3)Wait for the second leg stop hunt to the high/low of the day to confirm entry

4) Asian consolidation range should be very well defined

5) Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking

Each day there is a new high and low that is created.Trade the “W” formation reversal pattern at the lows.

This is a universal guide to trading W formations on any pair in Forex. This works on all time frames under the daily time frame. We recommend back testing everything we have highlighted in this post for greater clarity of the power you are tapping into!

The concept of trading M and W patterns
The retail trader masses may be dumb, but they are not that dumb. They will always continue to look for confirmation in order to validate their trades. So, we must understand the reverse psychology behind why the M and W pattern is such an effective reversal strategy. The confirmation the masses use to determine a trend is the creation of higher highs and higher lows in the case of an uptrend.



from TradingView Ideas https://ift.tt/3z0OqKV
via gqrds

No comments: